Copyright © 2013 Pearson Education, Inc.

Publishing as Prentice Hall

DATABASE AND BIG

DATA
LEARNING OUTCOMES

At the end of the lesson, student should be able to:

• Understand the basic concept of database
• Explain the use of database in business
• Describe the concept of big data
 DATABASE FUNDAMENTAL

• A database is a collection of related

data, which can be
• Stored
• Sorted
• Organized
• Queried
• Databases make data more meaningful
and more useful
• Databases turn data into information
DATABASE FUNDAMENTAL

Helps you interact more

effectively
Why I need to know
about databases?
Might not get the information
for which you are looking
 DATABASE FUNDAMENTAL

Databases Versus Lists

• Databases are not needed for
managing all types of data
– Lists are adequate for simple
tasks
– Other applications have tools
to create lists
• W ord
• Excel
 DATABASE FUNDAMENTAL

Databases Versus Lists

• When a list is not sufficient for organizing data

– Lists aren’t sufficient for complex information
– Lists aren’t efficient when multiple people need to
access information
DATABASE FUNDAMENTAL

Databases Versus Lists

• The problem with lists
– Data redundancy occurs when there is a Repetition
of data
– Would require the updating of multiple lists
– Data inconsistency happens when not all duplicated
data is updated properly
DATABASE BUILDINGDATABASE
FUNDAMENTALBLOCKS
DATABASES VERSUS LISTS
(CONT.)
DATABASE FUNDAMENTAL

Databases Versus Lists

• O ther problems using lists instead of databases
– Inappropriate data because of few checks
for invalid data
– Incomplete data due to difficulty of knowing
if or when information is missing
DATABASE FUNDAMENTAL

When exercising caution and setting rules are not

enough
• Being careful can help, but there’s still room for
error
• Data redundancy and inconsistency are still
problems
• Complex data needs to be organized in a
database
• Most practical and efficient
• Avoids pitfalls of lists
DATABASE FUNDAMENTAL

Advantages of Using Databases

– Manage large amounts of data
efficiently
– Enable information sharing
– Promote data integrity
DATABASE FUNDAMENTAL

• How databases can manage large amounts of

data efficiently?
– O rganize the data in specific ways
– Store in multiple lists (tables)
– Database programs are designed specifically
to manage large amounts of data accurately
as it is updated and manipulated
DATABASE FUNDAMENTAL

• How databases make information sharing

possible?
– O nly one file is maintained (data centralization)
– Centralized database becomes a shared source
of information
– No files to reconcile with each other
– Controlled access increases security
DATABASE
FUNDAMENTAL
DATABASE FUNDAMENTAL

• How databases promote data integrity?

– Data integrity means data is accurate and
reliable
– Centralization largely ensures data
integrity
– Data only needs to be updated in one
place, unlike using multiple lists
DATABASE FUNDAMENTAL

• Disadvantages associated with databases

– Can be more time consuming and expensive to set
up and administer
– Need to be careful in database design
– Database administrator is responsible for designing,
constructing, and maintaining databases
• Needed for larger databases
– Ongoing review ensures smooth flow of data
DATABASE FUNDAMENTAL

• Relational database
– O rganizes data in table format
– Logically groups similar data into a relation
(a table that contains related data)
– Links data between tables through
relationships on common keys
DATABASE FUNDAMENTAL

• How databases are created?

– A database management system
(DBMS) is specially designed software
used to capture and analyze data
• O racle Database
• Microsoft Access
DATABASE IN BUSINESSES

• Data warehouses
• Large-scale collection of data
• Contains and organizes data in one place
• Data comes from multiple databases
• Consolidate information from various
systems to present enterprise-wide view of
operations
DATABASE IN BUSINESSES

• Data in a data warehouse is organized

the same way as in a normal database
– Data is organized by subject
– Focus is on one specific aspect of an
operation
– Can contain information from multiple
databases
DATABASE IN BUSINESSES
 DATABASE IN BUSINESSES

• Data warehouses do not capture data from only

one time period
– Date is time-variant; it doesn’t all pertain to one time period
– Contains current and historical data
– Enables analysis of the past
– Examine the present in light of historical data
– Make projections about the future
 DATABASE IN BUSINESSES

How data warehouses are populated with

data?
• Internal sources: Company’s databases and other analysis tools
• External sources: Data provided by vendors, suppliers, etc.
• Clickstream data: Software which is used to capture information
about each click a user makes
DATABASE IN BUSINESSES
DATABASE IN BUSINESS

• Data mining
• Process by which great amounts of data are
analyzed and investigated
• O bjective is to spot significant patterns and
trends that would not be obvious
• Example: Enrollment data – School might
discover a consistent increase in new
engineering students who are women
DATABASE IN BUSINESSES

• Why businesses mine their data?

– Understand customers better
– Effective marketing by concentrating efforts
– Data is classified, then cluster analysis
allows managers to determine trends
– Example: Potato chips and soft drinks in
same aisle
DATABASE IN BUSINESS

• How businesses mine their data

– Classification
• Define helpful data classes
• Apply classes to unclassified data
– Estimation
• Enables managers to assign a value based on criterion
– Affinity grouping (association rules)
• Managers determine which data goes together
DATABASE IN BUSINESSES

• How businesses mine their data?

– Clustering
• O rganizing data into similar subgroups
• No predefined classes
– Description and visualization
• Describe data so managers can interpret it in
new and different ways
DATABASE IN BUSINESSES

Business Intelligence Systems

Information system is software-based solution used to

gather and analyze information

Delivers up-to-the-minute data

Databases, data warehouses, and data marts are

integral because they store the functional information
DATABASE IN BUSINESSES

Business Intelligence Systems

• All perform similar functions
• Acquiring data
• Processing data into information
• Storing data
• Providing user with output options
• Make information meaningful and useful
DATABASE IN BUSINESSES
DATABASE IN BUSINESSES

Business Intelligence Systems

• Information systems used by business
– Transaction-processing systems (operational)
– Management information systems (managerial)
– Decision support systems (senior managers)
– Enterprise resource planning (ERP) systems
(executive managers)
DATABASE IN BUSINESSES

Transaction-Processing Systems (TPS)

• keeps track of everyday business activities
• Example: Colleges
Track frequent transactions such as registering
students, accepting payments, printing course catalogs
DATABASE IN BUSINESSES

• How transactions are entered into a TPS?

– Real-time processing
– Batch processing
DATABASE IN BUSINESSES

• Real-time processing
• Database is updated while the transaction is
taking place
• Example: Register for classes online, the database
immediately records your registration in the class
to ensure you have a spot. O nline transaction
processing (O LTP) ensures that the data in the
TPS is current
DATABASE IN BUSINESSES

• Batch processing
– Transaction data is accumulated until point
is reached then several transactions are
processed at once
– Appropriate for activities that are not time
sensitive
– O ften more efficient to batch and process
all request periodically
DATABASE IN BUSINESSES
DATABASE IN BUSINESSES

• Management information system (MIS)

– Management information system (MIS) provides timely
and accurate information
– Enables managers to make critical decisions
– Direct outgrowth of TPSs
– Data could be powerful if organized and outputted in
useful form
– Today’s MISs are often included as a feature of TPSs
DATABASE IN BUSINESSES

• Types of reports generated by MISs

– Detail report : Provides a list of
transactions that occurred during a time
period
– Summary report : Provides a
consolidated picture of detailed data
– Exception report : Shows conditions that
are unusual or need attention
DATABASE IN BUSINESSES
DATABASE IN BUSINESSES

Decision Support System

– Decision support system (DSS) is another type of
business intelligence system designed to help managers
develop solutions for specific problems
– Example: Marketing Department
• Provide statistical information on customer attributes
• Assist managers in making advertising decisions
• Uses data and enables users to add insight and experiences and
apply them to the solution
DATABASE IN BUSINESSES
DATABASE IN BUSINESSES

Decision Support System (DSS)

How DSSs get data?
• Internal and external sources provide a
stream of data that is integrated into the DSS
• Internal sources are maintained by the
company
• External sources are from any source not
owned by the company that owns the DSS
DATABASE IN BUSINESSES

Enterprise resource planning system (ERP)

– accumulates all information relevant to running a
business
– Makes information available to whoever needs it
– Uses a common database that enables use across
multiple areas of an enterprise
THE
EVO LVING
WO RLD O F
BIG DATA
THE EVOLVING WORLD OF BIG
DATA
• Big Data refers to large scale data sets that require
advanced technologies beyond the capabilities of typical
database software to gather, store, process, retrieve, or
analyze.
 THE EVOLVING WORLD OF BIG
DATA
Characteristic of big data
• Analyst often refer to the three V’s when describing
characteristics of Big Data:
• Volume (How much data is generated?)
• Velocity (the rate at which data is generated)
• Variety (the different formats in which data can
appear)

Source taken from “Discovering Computers 2016”,Misty E.Vermaat, Susan L.Sebok,Steven M.Freund, Jennifer T.Campbell, Mark Frydenberg
 THE EVOLVING WORLD OF BIG
DATA

• Three implications of Big Data

• Big Data derives from a bundle of old and
new data sources
• Big Data could lead to a revolution in
measurement
• Big Data could lead to better decision making

Source taken from “Discovering Computers 2016”,Misty E.Vermaat, Susan L.Sebok,Steven M.Freund, Jennifer T.Campbell, Mark Frydenberg
THE EVOLVING WORLD OF BIG
DATA

The use of Big Data

• Big Data is finding major uses in medical research,
marketing, and even entertainment programming,
to name just a few areas.
 THE EVOLVING WORLD OF BIG
DATA

• The use of Big Data

Big Data in
Medicine

Smarter Junk Mail

Source taken from “Discovering Computers 2016”,Misty E.Vermaat, Susan L.Sebok,Steven M.Freund, Jennifer T.Campbell, Mark Frydenberg
 THE EVOLVING WORLD OF BIG
DATA

Data Visualization
• process of presenting data graphically as charts,
maps, or other pictorial formats

• As the size of databases grows, data

visualizations make it possible to interpret
complex data sets, find relationships among
data items, and discover patterns that can
provide useful information

• “Racial Dot Map” shown in the figure is a

visualization that displays one dot per person
in the United States.
 REFERENCES

1. Evans,A., Martin, K. and Poatsy, M.A.Technology In Action,16th edition,Pearson

Prentice Hall, 2021.
i. Topic : Database Basics(pg. 442
-460)-selected subtopic
ii. Topic : How Businesses Use Databases(pg.-474)
464 –selected subtopic
2. Discovering
Vermaat,E.M, Sebok,L.S, Freund,M.S,Campbell,T,J,Mark Frydenberg.
Computers 2016, Shelly Cashman Series
,2016
1. Topic : Implication of Big Data
2. Topic: The uses of Big Data
3. Using Information Technology : A Practical Introduction to Computers &
Communications,11e”, Brian K.Williams, Stacey C. Sawyer, McGrawHillEducation
1. Characteristic of Big Data
2. The uses of Big Data